The Times of India   06.09.2012

House, flat buyers find Narmada tax taxing

BHOPAL: The state government’s decision to levy Narmada tax
prior to issuing building permission for any construction will not put
an additional burden on those constructing new house, but also on those
who had bought houses after 2008 in Bhopal.Director of Fortune Builders and president of CREDAI Ajay Mohgaonkar questioned the criterion of charging Narmada tax.”Is it that Narmada water be supplied to only ones, who have built
their houses after 2008 or the city would get the benefit? If all wards
coming under Narmada water supply network are to be benefitted why only
ones who have built houses after 2008 should bear the burden,” he said,
adding that CREDAI would soon challenge it in court.

Any tax if
charged uniformly for basic need like water should not be objected, but
it must certainly not target only ones who have bought houses after 2008
in Bhopal, said Anshuman Jain, a businessman who bought a flat on JK
road few months ago.Amit Tiwari, branch manager of a bank in
Bhopal said he would not mind paying a few thousand more provided if the
BMC supplies sufficient potable water. Tiwari is looking forward to buy
a property in Bhopal.Ajay Khare, executive in a multinational
does not go with the idea of levying any additional tax on property
owners. Government should reconsider the decision.

Khare bought a house
in Bhopal two years ago and has to pay EMIs.The Narmada tax was
first introduced in 2008 after it was passed in the Bhopal Municipal
Corporation’s general council meet. However, as soon as the corporation
started charging this additional tax it was challenged in the court.It came to light that corporation cannot levy Narmada tax unless the
state government gives the nod. The proposal was sent to the state
government after that and the BMC stopped charging Narmada tax.But in a smart move, the cash-starved corporation started taking
affidavits from ones applying for building permission after that.

The affidavit entrusted the BMC with the powers of charging Narmada tax
even from ones who have been issued the building permissions from 2008
till the state government cleared the Narmada tax proposal ie on
September 4.BMC commissioner Rajneesh Shrivastava said, “The
corporation expects to collect around Rs 20 crore from the ones who have
been issued building permission from 2008 onwards. The affidavits were
taken from applicants at the time of issuing building permissions and
the corporation has all the powers for charging Narmada tax.”